FSB Seeks Input on ‘Too Big To Fail’ Reforms

The Basel, Switzerland-based Financial Stability Board is seeking feedback from industry stakeholders on the post-crisis regulatory reforms for “too big to fail” banks and whether the actions taken “are reducing the systemic and moral hazard risks associated with systemically important banks.” The comments will be incorporated into a report that FSB expects to publish for public consultation in June 2020.

Specifically, the board is requesting comments on the extent to which the reforms are achieving their objectives; how new policies have affected systemically important banks; whether effects of reforms differ by type of bank; the broader effects of the reform on the global financial system; and any unintended consequences that have arisen from the implementation of the reforms. Comments are due by June 21.